ARTICLE · 26 JANUARY 2024

Mastering The Liberalized Remittance Scheme (LRS): Legal Issues Every Remitter Should Know

Metalegal Advocates

Explore more from Metalegal Advocates

The Liberalized Remittance Scheme (‘LRS') established by the Reserve Bank of India (‘RBI') facilitates fund remittance by resident individuals for various purposes abroad.

IndiaFinance and Banking

Srishty Jaura

Author LinkedIn connections

The Liberalized Remittance Scheme ('LRS') established by the Reserve Bank of India ('RBI') facilitates fund remittance by resident individuals for various purposes abroad. This abstract outline key considerations for LRS remitters, including investments in foreign entities, remittance eligibility, family clubbing, documentation requirements, and prohibited transactions. It emphasizes adherence to RBI regulations, providing insights into investment routes, remittance purpose codes, and legal implications. Caution is advised when lending or gifting abroad, with a focus on transparent disclosure. The article concludes by highlighting the significance of using personal funds for remittances, ensuring financial prudence, and maintaining compliance with RBI guidelines for seamless transactions within the LRS framework.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Refinancing Heavy Infrastructure Debt: Managing Maturity Cliffs, Private Credit And High-Value Collateral

IndiaFinance and Banking

Agama Law Associates

CCI Unconditionally Approves DWS’s Acquisition Of A 40% Stake In Nippon Life India AIF Management

IndiaFinance and Banking

Beyond Loan Defaults: RBI’s 2026 Reforms On Loan Recovery Practices And NBFC Accountability

IndiaFinance and Banking

Responsible Lending And Borrower Protection: An Analysis Of RBI’s NBFC Responsible Business Conduct Directions, 2025

IndiaFinance and Banking

CCI Unconditionally Approves Fairfax-Backed Amalgamation Of Go Digit Infoworks Into Go Digit General Insurance

IndiaFinance and Banking

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Finance and Banking
- Financial Services
- Fund Management/ REITs

Related Comparative Guides

Comparative Guide

Capital Markets

Comparative Guide

Lending & Secured Finance

Comparative Guide

Securitisation

Comparative Guide

Project Finance

See more popular content from

Finance and Banking

Banking & Finance Updates September 2026

In August 2026, the Reserve Bank of India (RBI) released the draft Reserve Bank of India (Interest Rates on Loans and Advances) Directions, 2026, proposing a comprehensive framework for the way regulated entities determine and apply interest rates on loans. While the Indian banking sector has long operated under a patchwork of institution specific instructions, the draft Directions seek to bring much-needed consistency to interest rate regulation across banks, cooperative banks, regional rural banks (RRBs), all-India financial institutions and NBFCs. If finalised in their present form, the Directions will come into effect from 1 April 2027.

IndiaFinance and Banking

King, Stubb & Kasiva

Demystifying Net Owned Fund (NOF) Requirement For NBFCs In India

Every Non-Banking Finance Company ("NBFC") is required to have a Net Owned Fund ("NOF") as prescribed by the Reserve Bank of India ("RBI") from time to time to commence the business of a Non-Banking...

IndiaFinance and Banking

RBI Relaxes Registration Requirements For NBFCs

The Reserve Bank of India has introduced a new classification system for Non-Banking Financial Companies, fundamentally changing registration requirements based on public funding access, customer interface, and asset size thresholds. These regulatory changes create distinct compliance pathways for different NBFC categories while introducing new rules for group entities and overseas investments.

IndiaFinance and Banking

SEBI’s Proposed Comprehensive Overhaul Of The Portfolio Managers Regulations

The Securities and Exchange Board of India (SEBI) issued a consultation paper on 23 July 2026 (Consultation Paper). The Consultation Paper proposes a comprehensive review of the SEBI (Portfolio Managers) Regulations, 2020 (PMS Regulations).

IndiaFinance and Banking

A Guide To Insider Trading Laws In India!

In the world of finance, the term insider trading often evokes images of shady deals and hidden agendas. But what exactly is insider trading? Why is it illegal, and how do laws in India seek to prevent it? Let's dive into this intriguing subject, simplifying the complexities surrounding insider trading laws in India, while exploring the impact of these laws on the financial markets and their role in maintaining fairness.

IndiaFinance and Banking

MZM Legal, Advocates & Legal Consultants

Received A DRT / Sarfaesi Notice? A Borrower’s And Guarantor’s Guide To Response Timelines And Defences

The Debts Recovery Tribunal, also known as DRT, follows certain rules which relate to the time limits mentioned in the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act or the Act). These limits are not merely procedural requirements and instead are factors which influence the right of the borrower or guarantor depending on the stage of recovery proceedings in question.

IndiaFinance and Banking

Maheshwari & Co. Advocates & Legal Consultants

Maharashtra Introduces A Dedicated Stamp Duty Regime For Bank And Financial Guarantees

The Maharashtra Stamp (Fourth Amendment) Act, 2026 introduces a new dedicated stamp duty framework for financial and bank guarantees in Schedule I of the Maharashtra Stamp Act, 1958. This amendment establishes differentiated duty rates based on guarantee value and type, addressing long-standing ambiguities in how such instruments were previously taxed under generic security bond provisions. The reform has significant implications for banks, NBFCs, and entities dealing with government contracts, though quest

IndiaFinance and Banking

Supreme Court Clarifies Applicability Of SARFAESI Remedies For A Secured Creditor Who Acquires An NPA From A Non-notified NBFC

In Kotak Mahindra Bank Limited v Trupti Sanjay Mehta and Others, 2026 INSC 943 (Kotak Mahindra), the Hon’ble Supreme Court of India considered whether a bank as defined under Section 2(1)(c) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) could invoke the provisions of the SARFAESI Act to recover a secured debt acquired from an entity which was not covered under the ambit of the SARFAESI Act at the time of disbursement of the loan.

IndiaFinance and Banking

No Private University To Operate As A Profit-Making Institution: Supreme Court’s Recent Order

The Supreme Court vide its recent order dated September 17, 2026 (“Order”) in the matter of Ayesha Jain v. Amity University, Noida & Ors., [W.P. (C) No. 531/2025] came down heavily on the manner of operation of universities and issued a series of stringent directions requiring greater disclosure by universities, including with respect to their finances, admissions, staffing, grievance redressal and regulatory compliance

IndiaFinance and Banking

Debt-Free, But Not Regulation-Free? Decoding The Tata Sons RBI Saga

The recent regulatory developments surrounding Tata Sons have brought an unusual question into focus: Can a large holding company exit the Reserve Bank of India’s (RBI) non-banking financial company (NBFC) regulatory framework simply by becoming debt-free?

IndiaFinance and Banking

Lexplosion Solutions Private Limited